Pensions are already very complicated without the added confusion of the Lifetime Allowance or the Annual Allowance. If HMRC determines that you have saved too much into your pension over your lifetime or in a single tax year then you will have to pay an additional tax charge to HMRC. These tax charges can be quite large and can be quite a shock to most people.
This learning pathway is aimed at higher earners and any Unilever employee who is worried that they could potentially have an issue with the Lifetime Allowance and/or Annual Allowance.
In this video we cover the following topics:
- What are the Lifetime Allowance and the Annual Allowance?
- How will I know if I am affected by either of these?
- How to keep track of your own Annual Allowance and Lifetime Allowance position
- How is the tapered Annual Allowance worked out?
- Understanding your annual Pensions Saving Statement (for Annual Allowance purposes)
- How is the tax charge calculated if you breach the Lifetime Allowance or Annual Allowance?
- How do you pay the tax charge to HMRC, if one is payable?
- Are there any ways that you can reduce the impact of the Lifetime Allowance or the Annual Allowance?
Please note that this video was recorded in July 2021 and is based on tax allowances at that time.